Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Actuant Corporation's Quarter Earnings Conference Call. We are conducting a live meeting to coincide with the audio conference. If you would like to view the presentation online, please refer to your meeting invitation for details.

During the presentation, all participants will be in a listen-only mode. Afterwards, we'll conduct the question-and-answer session. As a reminder, this conference is being recorded on Wednesday, March 20, 2013.

It is now my pleasure to turn the conference over to Karen Bauer, Communications and Investor Relations Leader. Please go ahead Ms. Bauer.

Our earnings release and the slide presentation supplementing today's call are available in the Investors section of Actuant's website.

Before we start, let me offer the following cautionary note. During this call, we will be making forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Investors are cautioned that forward-looking statements are inherently uncertain and that there are a number of factors that could cause actual results to differ materially from these statements. These factors are outlined in our SEC filings.

Consistent with prior quarters, we'll utilize the one question and one follow-up rule in order to keep today's call to an hour. Thank you in advance for following this practice.

With that, I'll turn the call over to Bob.

Bob Arzbaecher - Chairman, President and CEO: Thank you, Karen, and thanks to all of you for participating in our second quarter earnings call. We were satisfied with our results which came in at the high end of our guidance range. Back on December's earnings call we said we expected the second quarter would look a lot like the first quarter and that’s what happened.

Core sales were down 6% compared to 7% in the first quarter and margins and earnings declined year-over-year as expected.

While consolidated results were in line with expectations there were some puts and takes between and within the segments, that we'll provide more color on today. Certain parts of Electrical and Engineered Solutions segment came in better than we anticipated while others were negatively impacted by customer inventory destocking and program launch delays. Industrial is 1% core sales growth was in line with our expectation. The Energy segment saw moderating results sequentially largely due to a robust 27% core sales growth comparable from a year ago. We feel we've arrived at an inflection point in the fiscal year with the first half down on a year-over-year basis in sales and profits, but the second half expected to grow. We'll expand on this later in the call. Andy will go through the details of the second quarter, then Mark and I will come back and cover a few other topics including guidance. Andy?

Transcript Call Date 03/20/2013

Operator: Allison Poliniak, Wells Fargo.

Allison Poliniak - Wells Fargo: Can you guys talk; Bob there is obviously a lot of uncertainty out there. But at this point are there any areas of your businesses that have been I guess depressed. You are starting to see the light at the end of the tunnel, that people are becoming more optimistic as we move forward?

Bob Arzbaecher - Chairman, President and CEO: I don’t think it’s a big change from last quarter. But what I would tell you is I think the Canary and the coal mine for us has always been kind of European truck. That seems to be the market that led us into the '08 recession and also led us into this one and if you peel out North America and look at truck in Europe, we've had strong less worse numbers, we are down to what high single-digits down and that’s from much, much higher numbers over the last three or four quarters. That we hope is one of the areas that will a little bit better. Obviously, as we said in our prepared remarks energy a little bit weaker, mostly Cortland related, mostly push out or kind of pushed to the second half related. So I don’t see a lot of other changes from what we said 90 days ago.

Allison Poliniak - Wells Fargo: Then just going back to Energy with the push outs I mean are we assuming these push out or delays are into your fiscal Q3 or Q4 or are they beyond that at this point?

Bob Arzbaecher - Chairman, President and CEO: Three and four.

Operator: Charlie Brady, BMO.

Andrew - BMO Capital Markets: This is (Andrew) in for Charlie Brady. I was wondering if you may be able to breakout the core growth of the traditional Enerpac business and the Integrated Solutions business?

Andy Lampereur - EVP and CFO: I think Enerpac was – the IT business was down a couple of percent to 3% and the IS business was probably up 10% or so, double-digits.

Karen Bauer - Communications and IR: Low double-digits.

Andrew - BMO Capital Markets: Also how much was the Cortland business down in – I guess what are you guys doing in the defense segment –defense industry end market?

Bob Arzbaecher - Chairman, President and CEO: Let me handle that and Andy you can decide what you want to give in the numbers. We typically don't give business unit numbers, but Andy will granulize it for you. The two big products that we do in defense, we do a tether that is done for balloons that do reconnaissance and it – so that is – it's a tether that actually moves helium up the balloon and also holds the balloon in place. The second piece is we do an umbilical that is used in submarines for torpedoes and those are the kind of the two major products within the Cortland portfolio.

Andy Lampereur - EVP and CFO: In terms of Cortland, what it was down, pretty similar to last quarter; it was down high single digits relative to Hydratight which this quarter was up low single digits.

Andrew - BMO Capital Markets: In the agriculture market, in the Engineered Solutions segment, you guys mentioned it was flat, are you guys seeing – do you guys expect that to kind of improve throughout the year or – and what's kind of like the cause of its kind of moderation.

Bob Arzbaecher - Chairman, President and CEO: Couple of things there, one, we do expect, there is some seasonality in that business as you would expect, as you plant crops. It's predominantly North American focused with some piece in Europe, but basically the North American crop and the use of equipment creates and aftermarket that we see. So, we will expect to see growth in the back half just as you get into the spring plantings season. As for what caused the decline, it's a combination of factors, the drought in the South last year certainly affected hay silage and utilization of our shaft because there weren't – they just were not bailing and harvesting as much grain and hay as they did the prior year due to the drought. So, the normal recurring revenue that we get associated with usage was just a little bit lighter. The other thing is OEM backlogs. Again, we don't sell a lot to the big three. We sell more to the short line guys, but OEMs in general have been very careful with the inventory as we’ve talked at length on and that affected. But even with all that, kind of a bad quarter for us and agriculture was flat. So, we felt pretty good about that.